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Telstra Corporation Ltd
OTC:TTRAF

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Telstra Corporation Ltd
OTC:TTRAF
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Price: 3.63 USD Market Closed
Market Cap: $42.2B

EV/EBIT

20.1
Current
8%
More Expensive
vs 3-y average of 18.6

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
20.1
=
Enterprise Value
$72B
/
EBIT
AU$3.7B

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
20.1
=
Enterprise Value
$72B
/
EBIT
AU$3.7B

Valuation Scenarios

Telstra Corporation Ltd is trading above its 3-year average

If EV/EBIT returns to its 3-Year Average (18.6), the stock would be worth $3.36 (7% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-17%
Maximum Upside
+52%
Average Upside
9%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 20.1 $3.63
0%
3-Year Average 18.6 $3.36
-7%
5-Year Average 22 $3.97
+9%
Industry Average 30.6 $5.51
+52%
Country Average 16.8 $3.03
-17%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
$72B
/
Jan 2026
AU$3.7B
=
20.1
Current
$72B
/
Jun 2026
AU$4.2B
=
17.3
Forward
$72B
/
Jun 2027
AU$4.3B
=
16.6
Forward
$72B
/
Jun 2028
AU$4.5B
=
15.9
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
AU
Telstra Corporation Ltd
OTC:TTRAF
60B USD 20.1 26.5
US
Verizon Communications Inc
NYSE:VZ
193.9B USD 9.7 11.3
US
AT&T Inc
NYSE:T
182.8B USD 11.6 8.4
DE
Deutsche Telekom AG
XETRA:DTE
132.7B EUR 9.3 13.8
CN
China Telecom Corp Ltd
SSE:601728
549B CNY 12.1 16.6
JP
Nippon Telegraph and Telephone Corp
TSE:9432
12.5T JPY 10.2 11.6
SG
Singapore Telecommunications Ltd
SGX:Z74
80.3B SGD 60.1 13
FR
Orange SA
PAR:ORA
46B EUR 17 85.5
SA
Saudi Telecom Company SJSC
SAU:7010
189.1B SAR 12.9 12.8
CH
Swisscom AG
SIX:SCMN
34.1B CHF 24.3 27.2
AU
Telstra Group Ltd
F:5KB
37B EUR 20.6 27.2

Market Distribution

In line with most companies in Australia
Percentile
42st
Based on 1 236 companies
42st percentile
14
Low
0 — 10.7
Typical Range
10.7 — 24.5
High
24.5 —
Distribution Statistics
Australia
Min 0
30th Percentile 10.7
Median 16.8
70th Percentile 24.5
Max 6 797.5

Telstra Corporation Ltd
Glance View

Telstra Corporation Ltd., Australia's telecommunications titan, has long been a linchpin in the nation's communication fabric, weaving a narrative of innovation and resilience. Born from the governmental embrace as the Postmaster-General's Department, Telstra morphed through the ages into a privatized powerhouse driving Australia's digital landscape. The company caters to millions with its comprehensive suite of services, spanning mobile and fixed broadband, telephony, and pay television, effectively making it Australia's largest provider. With its ever-expanding 5G network aiming to cover 95% of the population, Telstra harnesses technology's leaps to maintain its competitive edge, ensuring seamless connectivity for businesses and consumers across the island continent. At the heart of Telstra’s revenue engine lies a robust strategy focused on leveraging its vast infrastructure and service breadth. The bulk of its profits flows from its mobile network services, where it commands a sizable market share. Its consumer and enterprise-oriented divisions offer a broad spectrum of telecommunication services, while the international business arm extends its reach beyond Australian shores, focusing on global connectivity. Moreover, Telstra pursues growth through strategic partnerships and digital transformation initiatives, like enhancing its IT services and venturing into innovative tech domains, including cloud services and the Internet of Things (IoT). The company’s narrative is one of adaptation and forward-thinking, consistently recalibrating its course to address evolving technological landscapes and consumer demands.

TTRAF Intrinsic Value
3.57 USD
Overvaluation 2%
Intrinsic Value
Price $3.63
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